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A machine whose fixed whose fixed hourly depreciation is computed as $41.63/hr was purchased by ABC company. The FOG and minor maintenance are estimated to
A machine whose fixed whose fixed hourly depreciation is computed as $41.63/hr was purchased by ABC company. The FOG and minor maintenance are estimated to cost $60.50 per operating hour. The replacement cost of a set of tires cost $18,000 and their estimated life is 4,100 use hours. A$17,000 major repair will probably be required after 6,800hr of use. The machine is expected to last for 11,300 hr, after which it will be sold at a price (salvage value) equal to 15% of the original purchase price. A final set of new tires will not be purchased before the sale. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 4,100hr per year? The company's cost-of-capital rate is 7.35%. A machine whose fixed whose fixed hourly depreciation is computed as $41.63/hr was purchased by ABC company. The FOG and minor maintenance are estimated to cost $60.50 per operating hour. The replacement cost of a set of tires cost $18,000 and their estimated life is 4,100 use hours. A$17,000 major repair will probably be required after 6,800hr of use. The machine is expected to last for 11,300 hr, after which it will be sold at a price (salvage value) equal to 15% of the original purchase price. A final set of new tires will not be purchased before the sale. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 4,100hr per year? The company's cost-of-capital rate is 7.35%
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